We can expect innovation in these difficult banking times. It will come in ways that no-one expects. innovation is often non linear, and always counter-intuitive. Here is an example no-one expected.

Goldman Sachs mulls online bank – Wall Street Journal | finextra.com

Goldman Sachs is considering launching an Internet banking operation in an effort to build its deposit base, the Wall Street Journal reports.

Citing unidentified sources close to the bank, the Journal says the new unit will seek deposits that can be used to fund future business initiatives. The company has not ruled out the possibility of buying an existing retail banking operation with a strong direct banking arm, the paper says.